The
acquisition of
Bernheim
-
Comofi by
Fortis AG
in line with the
real estate
investment
strategy
Jozef De Mey
CEO Fortis AG
Alain Devos
Managing Director
Fortis Real Estate
February 3, 2003
11/19/2013
-
p.
2
Agenda
•
The real estate investments of Fortis
•
The real estate portfolio managed by
Fortis Vastgoed
•
The real estate investments of
Fortis AG :
–
before the acquisition of Bernheim
-
Comofi
–
after the acquisition of Bernheim
-
Comofi
11/19/2013
-
p.
3
The investment portfolio
of Fortis
Asset Allocation
September 30, 2002
Total value : EUR 139.4 billion
REAL ESTATE
5%
SHARES
8%
FIXED INCOME
87%
11/19/2013
-
p.
4
Total value : EUR 6.70 billion
The investment portfolio
of Fortis
Real Estate
Corporate buildings
EUR 2.66 bn
Investment portfolio
EUR 4.04 bn
BANKING
71%
INSURANCE
29%
FORTIS REAL ESTATE
(Belgium)
49%
OTHER COUNTRIES
FORTIS VASTGOED
(Netherlands)
48%
3%
September 30, 2002
11/19/2013
-
p.
5
The real estate portfolio
managed by Fortis Vastgoed
•
Investment portfolio (on balance) :
EUR 1.94 bn
OFFICES
22%
RETAIL
21%
RESIDENTIAL
32%
LAND
23%
PARKINGS
2%
•
Largest private land
owner in the Netherlands
with 25,000 ha
•
7,500 residential buildings
•
Retail concentrated in
AAA locations
•
Corporate buildings (on balance) :
EUR 0.38 bn
•
Third party investments (off balance) :
EUR 0.53 bn
11/19/2013
-
p.
6
•
Alternative long
-
term investment (15
-
20 Y)
Relative short
-
term illiquidity
•
Limited volatility
•
Slight correlation with shares and bonds
•
Index
-
linked incomes
•
Return > yield of OLOs for the same period
•
Limited risk due to asset
-
mix of different types of
property
Why does Fortis AG invest in
Real Estate ?
11/19/2013
-
p.
7
Role of Fortis Real Estate in the
Fortis group
Fortis AG
Fortis Bank
Insurance
Fortis Bank
Investment
Portfolio
Corporate
Buildings
Investment
Portfolio
Corporate
Buildings
Investment
Portfolio
Corporate
Buildings
Asset
Management
X
X
X
X
X
Property
Management
X
X
X
Development
X
X
•
Focus on servicing the Fortis Group in
Belgium
11/19/2013
-
p.
8
The real estate portfolio managed
by Fortis Real Estate
Before the acquisition of Bernheim
-
Comofi
Mid 2002
Billion EUR
Investment portfolio
1.01
Corporate buildings
1.22
Management for 3rd parties
Total
2.23
11/19/2013
-
p.
9
How does Fortis Real Estate
optimize the return of the real
estate investments managed?
Track record in :
•
Real Estate Asset Management
•
Real Estate Property Management
•
Real Estate Development
11/19/2013
-
p.
10
The real estate investments of
Fortis AG before the acquisition
•
Mainly invested in the Brussels office
market ...
OFFICES
67%
RETAIL
32%
RESIDENTIAL
1%
BRUSSELS
87%
WALLONIA
5%
FLANDERS
8%
In % of value
In % of value
Mid 2002
11/19/2013
-
p.
11
•
the 4th major office market in Europe...
0
5
10
15
20
25
30
35
40
45
Paris
London
Berlin
Brussels
Stockholm
Frankfurt
Madrid
Vienna
Milan
Amsterdam
Luxemburg
Siz e of major European office markets (millions of sqm)
Source : DTZ, figures as per Mid
-
2002
The real estate investments of
Fortis AG before the acquisition
11/19/2013
-
p.
12
•
with a rent increase potential...
Source : DTZ, figures as per Mid
-
2002
0
200
400
600
800
1.000
1.200
1.400
London
Paris
Frankfurt
Milan
Stockholm
Madrid
Amsterdam
Vienna
Brussels
Re nta l l e ve l i n m a j or Europe a n offi ce m a rke ts (EUR/sqm )
The real estate investments of
Fortis AG before the acquisition
11/19/2013
-
p.
13
•
still representing interesting yields...
Source : DTZ, figures as per Mid
-
2002
4,00%
4,50%
5,00%
5,50%
6,00%
6,50%
7,00%
Brussels
Stockholm
Amsterdam
London
Milan
Madrid
Paris
Vienna
Frankfurt
P ri m e yi e l d i n m a j or Europe a n offi ce m a rke ts
The real estate investments of
Fortis AG before the acquisition
11/19/2013
-
p.
14
•
and in the past proved to have a relatively
low risk profile with interesting returns
Brussels
0
5
10
15
20
25
0
10
20
30
40
50
1980
-
Qtr 4 2001
Gross returns % pa
Volatility (standard deviation)
Amst
Note: Data as at 31 December 2001 over 21 year period as data permits
Source: Jones Lang LaSalle European Research, January 2002
Barc
Berl
Dub
Duss
Frank
Ham
Lond
Mad
Mil
Mun
Par
Stock
The real estate investments of
Fortis AG before the acquisition
11/19/2013
-
p.
15
•
Within Brussels mainly invested in the
Brussels office sub
-
markets...
Leopold
District
30%
Periphery
2%
City Center
43%
Louise
District
8%
Decentrali-
sed Area
17%
CBD
:
81%
In % of value
The real estate investments of
Fortis AG before the acquisition
11/19/2013
-
p.
16
•
lodging stable tenants :
–
European Institutions
–
Belgian and International Administrations ...
0%
10%
20%
30%
40%
50%
60%
70%
Ci ty Ce nte r
Le opol d
di stri ct
Loui se di stri ct
De ce ntra l i se d
Ea st
De ce ntra l i se d
W e st
P ubl i c se ctor ta ke -up by di stri ct (%)
Ave ra ge a nnua l ta ke -up 1996-2000
Ta ke -up 2000
Ta ke -up 2001
Source : Catella Codemer, the Brussels Office Market, 1st quarter report 2002
CBD
The real estate investments of
Fortis AG before the acquisition
11/19/2013
-
p.
17
•
less influenced by the uncertain
economic climate and representing the
lowest vacancy rates, now...
Source : JLL, figures at end of 3rd quarter 2002
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
City Center
North District
Leopold
District
Louise
District
Decentralised
Area
Periphery
Brussels +
Periphery
Va ca ncy ra te s Brusse l s offi ce sub-ma rke ts
CBD
The real estate investments of
Fortis AG before the acquisition
11/19/2013
-
p.
18
•
and in the past
0,0 %
2,0 %
4,0 %
6,0 %
8,0 %
1 0,0 %
1 2,0 %
1 4,0 %
1 6,0 %
1 8,0 %
2 0,0 %
2 2,0 %
1 9 9 8
1 9 9 9
2 0 0 0
2 0 0 1
Q1 0 2
Q2 0 2
Q3 0 2
Brussels and periphery
City Center
Léopold District
North District
Louise District
Decentralised Area
Periphery
Source : JLL
Vacancy rates Brussels office sub
-
market 1998
-
Q32002
The real estate investments of
Fortis AG before the acquisition
11/19/2013
-
p.
19
The result of this investment
strategy proved to be excellent
Average
net rental yield :
8,2%
Average
realized return :
10,0%
Figures 2002 : acquisition of Bernheim
-
Comofi excluded
0,00%
2,00%
4,00%
6,00%
8,00%
10,00%
12,00%
14,00%
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
Net r ental yield
Realized Retur n
11/19/2013
-
p.
20
•
Brussels office prime yields are falling
But the real estate investment
environment is changing
6,00 %
6,20 %
6,40 %
6,60 %
6,80 %
7,00 %
7,20 %
7,40 %
7,60 %
7,80 %
1993
1994
1995
1996
1997
1998
1999
2000
2001
MID-2002
P ri m e yi e l ds Brusse l s offi ce m a rke t
Source : DTZ
11/19/2013
-
p.
21
Fortis Real Estate decided to adapt
pro
-
actively its investment strategy
•
Key decisions were based on :
–
Portfolio diversification via :
•
Product diversification
•
Geographical diversification with local management
–
Increase capital gains and returns through
expanding the development business
–
Expanding the fee business by capitalizing
on own track record and a 3rd party track
record in asset management for 3rd
parties
11/19/2013
-
p.
22
Parking
Asset
Management
Property
Management
Development
In which activities does Bernheim
-
Comofi have a track record ?
11/19/2013
-
p.
23
Interparking
•
263 car parks
•
130,255 spaces off
-
street
•
7 countries
•
79 cities
Belgium
36%
France
14%
Austria
2%
Germany
25%
Netherlands
3%
Spain
14%
Italy
6%
11/19/2013
-
p.
24
1
2
3
Belgium
Interparking
City Parking
Q-Park
Germany
Interparking
APCOA
Q-Park
France
VINCI
Interparking
Austria
APCOA
Interparking
Netherlands
Q-PARK
Interparking
Spain
SABA
Interparking
Ferrovial
Italy
Interparking
SABA
Apcoa
Interparking
Competitors /Rankings
11/19/2013
-
p.
25
Bernheim Real Estate
Development
•
Focus on real estate developments
for resale purposes in Belgium
•
Main current developments :
–
Parc de l’Alliance (Braine l’Alleud)
–
Crystal Building (Av Cortenbergh)
–
Botanic Building (North District)
–
Nouvelles Galeries Anspach
11/19/2013
-
p.
26
Bernheim Asset Management
•
Focus on asset management for 3rd
parties in Belgium
•
15 certificates and the second largest
Sicafi
–
Main contracts :
•
Befimmo
•
Woluwé Shopping Center + Woluwé extension
•
Westland Shopping Center
•
Chaussée de la Hulpe
•
Kortrijk Ring Shopping Center
•
Place Communale Auderghem
11/19/2013
-
p.
27
•
Excellent track record in the Real Estate business
•
Interparking is bringing :
–
product diversification versus office & retail properties
–
geographical diversification (7 countries
-
79 cities
-
263 car
parks
-
130,255 car park spaces)
•
Contribution of the development activities to the
capital gains and higher return of Fortis AG
•
Ranks Fortis Real Estate as market leader in Asset
Management for third parties in Belgium (fee
business)
Bernheim
-
Comofi was the answer
to the adapted investment strategy
of Fortis Real Estate
11/19/2013
-
p.
28
Before the
acquisition
(in % of value)
After the
acquisition
(in % of value)
In one step
The real estate investment portfolio of
Fortis AG
Product diversification
OFFICES
67%
RETAIL
32%
RESIDENTIAL
1%
RESIDENTIAL
1%
RETAIL
17%
OFFICES
40%
PARKINGS
42%
Mid 2002
11/19/2013
-
p.
29
In one step
The real estate investment portfolio of
Fortis AG
Geographical diversification
Before the
acquisition
(in % of value)
After the
acquisition
(in % of value)
BRUSSELS
87%
WALLONIA
5%
FLANDERS
8%
BELGIUM
73%
FRANCE
6%
GERMANY
10%
SPAIN
6%
ITALY
3%
NETHERLANDS
1%
AUSTRIA
1%
Mid 2002
11/19/2013
-
p.
30
Billion EUR
After
Investment portfolio
2.00
Corporate buildings
1.22
Management for 3rd parties
Total
4.70
1.48
1.01
1.22
2.23
Before
In one step
The real estate portfolio managed by Fortis
Real Estate
Mid 2002
11/19/2013
-
p.
31
The investment portfolio
of Fortis AG
Asset Allocation
REAL ESTATE
8%
FIXED INCOME
70%
SHARES
22%
SHARES
19%
REAL ESTATE
13%
FIXED INCOME
68%
Before the acquisition
of Bernheim
-
Comofi
After the acquisition of
Bernheim
-
Comofi
June 30, 2002
EUR 13.40 bn
September 30, 2002
EUR 13.79 bn
The
acquisition of
Bernheim
-
Comofi by
Fortis AG
in line with the
real estate
investment
strategy
Jozef De Mey
CEO Fortis AG
Alain Devos
Managing Director
Fortis Real Estate
February 3, 2003
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